Metatrader 5 Overview

Candlesticks Vol 2 - Candlestick Sentiment

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Real Body and Upper and Lower Shadows
http://c.mql5cdn.com/3/22/11__1.jpg

The rectangular area between the opening and the close of a session of trading is called the real body. The thin lines that look like candle wicks above and below the real body are called shadows. The shadow above the real body is called the upper shadow, the top end of the upper shadow corresponding to the high of the session of trading, and the shadow below the real body is called the lower shadow, where the bottom end of the lower shadow corresponds to the low of the session of trading.

Bullish Candlestick

http://c.mql5cdn.com/3/22/22.jpg


When discussing trading sessions based on a trading day (morning to afternoon), generally speaking the two most significant times of the trading day are the opening and the close. The opening and the close create the real body of the candlestick; hence, the most important part of a candlestick is the real body. By looking at a candlestick, a person can quickly tell whether traders were eagerly buying throughout the day (bulls were in charge for the trading day) - the candlestick is green, or whether traders were eagerly selling throughout the day (bears dominated the trading day) - the candlestick is red. By looking at the size of the real body of the candlestick, a trader can tell if the bulls were significantly in charge of the trading day (a tall green candlestick) or only moderately in charge of the trading day (a small green candlestick). Similarly, if a trader sees a large red candle, he or she can assume that the selling pressure of the bears overpowered the bulls for the day; however, if the candlestick is very small and red, then the trader can see that the bears were only slightly more powerful that day than the bulls. In summary, the real body of a candlestick can summarize the outcome of a period of trading in an easy to see way – green = bulls win the trading session, red = bears win the trading session; and the height of the candle equals the margin of victory for the bulls or the bears.


http://c.mql5cdn.com/3/22/33.jpg

Steve Nison (1994) states that “for a [bullish] candle to have meaning, some Japanese candlestick traders believe that the real body should be at least three times as long as the previous day’s real body.” (p. 20). Roads (2008) suggests the following: “determine the area covered by the difference between the close and the open. If it’s at least 90 percent of the area covered by the difference between the high and low, you have a long white candle” (p. 76). An example of a computer charting package’s definition is: “Its Close price is higher than the Open price; Its body is longer than each shadow; Its body is longer than the average body size calculated for the specified number of preceding candles” (ThinkorSwim, 2011).

http://c.mql5cdn.com/3/22/44.jpg


Bullish Marubozu

There are specific versions of the bullish candle. The first is a very bullish candlestick called the bullish marubozu. The rough translation of marubozu is “bald or little hair” (Rhoads, 2008, p. 74). A marubozu is bald or has little hair because a marubozu has no upper or lower shadow, or at least a very small upper and/or lower shadow. This is the most extreme form of the bullish candlestick because bulls were in charge from the opening to the close; bears were unable to push prices below the opening price and the trading session ended with bulls still buying pushing prices upward until the close.

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http://youtu.be/v2TkJDseG8I

Candlesticks Vol 3 - Candle Development

http://youtu.be/enPN5pIeGMo

Candlesticks - Vol 4 - Candle Pattern Stages

Candle Pattern Stages :

1. Trend
2. pattern
3. Confirmation

http://youtu.be/r8HRouyRKsg

Candlesticks - Vol 5 - Shooting Star

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The Shooting Star candlestick formation is a significant bearish reversal candlestick pattern that mainly occurs at the top of uptrends.


http://c.mql5cdn.com/3/23/ShootingStarPic1.gif


The Shooting formation is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow, generally defined as at least twice the length of the real body.

When the low and the close are the same, a bearish Shooting Star candlestick is formed and it is considered a stronger formation because the bears were able to reject the bulls completely plus the bears were able to push prices even more by closing below the opening price.

The Shooting Star formation is considered less bearish, but nevertheless bearish when the open and low are roughly the same. The bears were able to counteract the bulls, but were not able to bring the price back to the price at the open.

The long upper shadow of the Shooting Star implies that the market tested to find where resistance and supply was located. When the market found the area of resistance, the highs of the day, bears began to push prices lower, ending the day near the opening price. Thus, the bullish advance upward was rejected by the bears.

Shooting Star Candlestick Chart Example

The chart below of Cisco Systems (CSCO) illustrates a Shooting Star reversal pattern after an uptrend:


http://c.mql5cdn.com/3/23/ShootingStarPic2.gif


In the chart above of CSCO, the market began the day testing to find where supply would enter the market. CSCO's stock price eventually found resistance at the high of the day. In fact, there was so much resistance and subsequent selling pressure, that prices were able to close the day significantly lower than the open, a very bearish sign.

The Shooting Star is an extremely helpful candlestick pattern to help traders visually see where resistance and supply is located. After an uptrend, the Shooting Star pattern can signal to traders that the uptrend could be over and that long positions should probably be reduced or completely exited.

However, other indicators should be used in conjunction with the Shooting Star candlestick pattern to determine sell signals, for example, waiting a day to see if prices continued falling or other chart indications such as a break of an upward trendline.

For aggressive traders, the Shooting Star pattern illustrated above could be used as the sell signal. The red portion of the candle (the difference between the open and close) was so large with CSCO, that it could be considered the same as a bearish candle occuring on the next day. However, caution would have to be used because the close of the Shooting Star rested right at the uptrend support line for Cisco Systems.

Generally speaking though, a trader should wait for a confirmation candle before entering.

The bullish version of the Shooting Star formation is the Inverted Hammer formation that occurs at bottoms. Another similar candlestick pattern in look and interpretation to the Shooting Star pattern is the Gravestone Doji

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http://youtu.be/mt2_bm2Xy-4

Candlesticks - Vol 6 - Hanging Man

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Hanging Man

The Hanging Man candlestick formation, as one could predict from the name, is a bearish sign. This pattern occurs mainly at the top of uptrends and is a warning of a potential reversal downward. It is important to emphasize that the Hanging Man pattern is a warning of potential price change, not a signal, in and of itself, to go short.
http://c.mql5cdn.com/3/22/Hanging1.gif

The Hanging Man formation, just like the Hammer, is created when the open, high, and close are roughly the same price. Also, there is a long lower shadow, which should be at least twice the length of the real body.
When the high and the open are the same, a bearish Hanging Man candlestick is formed and it is considered a stronger bearish sign than when the high and close are the same, forming a bullish Hanging Man (the bullish Hanging Man is still bearish, just less so because the day closed with gains).

After a long uptrend, the formation of a Hanging Man is bearish because prices hesitated by dropping significantly during the day. Granted, buyers came back into the stock, future, or currency and pushed price back near the open, but the fact that prices were able to fall significantly shows that bears are testing the resolve of the bulls. What happens on the next day after the Hanging Man pattern is what gives traders an idea as to whether or not prices will go higher or lower.

Hanging Man Candlestick Chart Example

The chart below of Alcoa (AA) stock illustrates a Hanging Man, and the large red bearish candle after the Hanging Man strengthens the bears thinking that a downward reversal is coming:
http://c.mql5cdn.com/3/22/Hanging2.gif

In the chart above of Alcoa, the market began the day testing to find where demand would enter the market. Alcoa's stock price eventually found support at the low of the day. The bears' excursion downward was halted and prices ended the day slightly above the close.

Confirmation that the uptrend was in trouble occured when Alcoa gapped down the next day and continued downward creating a large bearish red candle. To some traders, this confirmation candle, plus the fact that the upward trendline support was broken, gave the signal to go short.

It is important to repeat, that the Hanging Man formation is not the sign to go short; other indicators such as a trendline break or confirmation candle should be used to generate sell signals.
The bullish version of the Hanging Man is the Hammer formation

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http://youtu.be/_wg_NjFj1gk

Candlesticks - Vol 7 - Hammer

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Hammer

The Hammer candlestick formation is a significant bullish reversal candlestick pattern that mainly occurs at the bottom of downtrends.
http://c.mql5cdn.com/3/22/HammerPic1.gif

The Hammer formation is created when the open, high, and close are roughly the same price. Also, there is a long lower shadow, twice the length as the real body.

When the high and the close are the same, a bullish Hammer candlestick is formed and it is considered a stronger formation because the bulls were able to reject the bears completely plus the bulls were able to push price even more past the opening price.

In contrast, when the open and high are the same, this Hammer formation is considered less bullish, but nevertheless bullish. The bulls were able to counteract the bears, but were not able to bring the price back to the price at the open.

The long lower shadow of the Hammer implies that the market tested to find where support and demand was located. When the market found the area of support, the lows of the day, bulls began to push prices higher, near the opening price. Thus, the bearish advance downward was rejected by the bulls.

Hammer Candlestick Chart Example

The chart below of American International Group (AIG) stock illustrates a Hammer reversal pattern after a downtrend:
http://c.mql5cdn.com/3/22/HammerPic2.gif

In the chart above of AIG, the market began the day testing to find where demand would enter the market. AIG's stock price eventually found support at the low of the day. In fact, there was so much support and subsequent buying pressure, that prices were able to close the day even higher than the open, a very bullish sign.

The Hammer is an extremely helpful candlestick pattern to help traders visually see where support and demand is located. After a downtrend, the Hammer can signal to traders that the downtrend could be over and that short positions should probably be covered.

However, other indicators should be used in conjunction with the Hammer candlestick pattern to determine buy signals, for example, waiting a day to see if a rally off of the Hammer formation continues or other chart indications such as a break of a downward trendline. But other previous day's clues could enter into a traders analysis. An example of these clues, in the chart above of AIG, shows three prior day's Doji's (signs of indecision) that suggested that prices could be reversing trend; in that case and for an aggressive buyer, the Hammer formation could be the trigger to go long.

The bearish version of the Hammer is the Hanging Man formation

Another similar candlestick pattern to the Hammer is the Dragonfly Doji

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http://youtu.be/wHDgt2HYpnk

Candlesticks - Vol 8 - Inverted Hammer

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The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and is a warning of a potential reversal upward. It is important to note that the Inverted pattern is a warning of potential price change, not a signal, in and of itself, to buy.
http://c.mql5cdn.com/3/23/InvertedHammerPic1.gif

The Inverted Hammer formation, just like the Shooting Star formation, is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow, which should be at least twice the length of the real body.
When the low and the open are the same, a bullish Inverted Hammer candlestick is formed and it is considered a stronger bullish sign than when the low and close are the same, forming a bearish Hanging Man (the bearish Hanging Man is still considered bullish, just not as much because the day ended by closing with losses).
After a long downtrend, the formation of an Inverted Hammer is bullish because prices hesitated their move downward by increasing significantly during the day. Nevertheless, sellers came back into the stock, future, or currency and pushed prices back near the open, but the fact that prices were able to increase significantly shows that bulls are testing the power of the bears. What happens on the next day after the Inverted Hammer pattern is what gives traders an idea as to whether or not prices will go higher or lower.

Inverted Hammer Candlestick Chart Example

The chart below of the S&P 500 Futures contract shows the Inverted Hammer foreshadowing future price increases:
http://c.mql5cdn.com/3/23/InvertedHammerPic2.gif

In the chart above of e-mini future, the market began the day by gapping down. Prices moved higher, until resistance and supply was found at the high of the day. The bulls' excursion upward was halted and prices ended the day below the open.
Confirmation that the dowtrend was in trouble occured the next day when the E-mini S&P 500 Futures contract gapped up the next day and continued to move upward, creating a bullish green candle. To some traders, this confirmation candle, plus the fact that the downward trendline resistance was broken, gave the signal to go long.
It is important to repeat, that the Inverted Hammer formation is not the signal to go long; other indicators such as a trendline break or confirmation candle should be used to generate the actual buy signal.
The bearish version of the Inverted Hammer is the Shooting Star formation


http://youtu.be/xTP9gQ_6Sjg

Candlesticks - Vol 9 - Doji

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Dragonfly Doji

The Dragonfly Doji is a significant bullish reversal candlestick pattern that mainly occurs at the bottom of downtrends.
http://c.mql5cdn.com/3/22/Dragonfly1.gif

The Dragonfly Doji is created when the open, high, and close are the same or about the same price (Where the open, high, and close are exactly the same price is quite rare). The most important part of the Dragonfly Doji is the long lower shadow.
The long lower shadow implies that the market tested to find where demand was located and found it. Bears were able to press prices downward, but an area of support was found at the low of the day and buying pressure was able to push prices back up to the opening price. Thus, the bearish advance downward was entirely rejected by the bulls.

Dragonfly Doji Candlestick Chart Example

The chart below of the mini-Dow Futures contract illustrates a Dragonfly Doji occuring at the bottom of a downtrend:
http://c.mql5cdn.com/3/22/Dragonfly2.gif

In the chart above of the mini-Dow, the market began the day testing to find where demand would enter the market. The mini-Dow eventually found support at the low of the day, so much support and subsequent buying pressure, that prices were able to close the day approximately where they started the day.
The Dragonfly Doji is an extremely helpful Candlestick pattern to help traders visually see where support and demand is located. After a downtrend, the Dragonfly Doji can signal to traders that the downtrend could be over and that short positions should probably be covered. Other indicators should be used in conjunction with the Dragonfly Doji pattern to determine buy signals, for example, a break of a downward trendline.
The bearish version of the Dragonfly Doji is the Gravestone Doji

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Gravestone Doji

The Gravestone Doji is a significant bearish reversal candlestick pattern that mainly occurs at the top of uptrends.
http://c.mql5cdn.com/3/22/Gravestone1.gif

The Gravestone Doji is created when the open, low, and close are the same or about the same price (Where the open, low, and close are exactly the same price is quite rare). The most important part of the Graveston Doji is the long upper shadow.
The long upper shadow is generally interpreted by technicians as meaning that the market is testing to find where supply and potential resistance is located.
The construction of the Gravestone Doji pattern occurs when bulls are able to press prices upward.
However, an area of resistance is found at the high of the day and selling pressure is able to push prices back down to the opening price. Therefore, the bullish advance upward was entirely rejected by the bears.

Gravestone Doji Example

The chart below of Altria (MO) stock illustrates a Gravestone Doji that occured at the top of an uptrend:
http://c.mql5cdn.com/3/22/Gravestone2.gif

In the chart above of Altria (MO) stock, the market began the day testing to find where support would enter the market. Altria eventually found resistance at the high of the day, and subsequently fell back to the opening's price.
The Gravestone Doji is an extremely helpful Candlestick reversal pattern to help traders visually see where resistance and supply is likely located. After an uptrend, the Gravestone Doji can signal to traders that the uptrend could be over and that long positions should probably be exited. But other indicators should be used in conjunction with the Gravestone Doji pattern to determine an actual sell signal. A potential trigger could be a break of the upward trendline support.
The reverse of the Gravestone Doji is the bullish Dragonfly Doji

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http://youtu.be/dWkSRpkU_Os

Candlesticks - Vol 10 - Harami

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Harami

The Harami (meaning "pregnant" in Japanese) Candlestick Pattern is a reversal pattern. The pattern consists of two Candlesticks:

• Larger Bullish or Bearish Candle (Day 1)
• Smaller Bullish or Bearish Candle (Day 2)

http://c.mql5cdn.com/3/22/harami1.gif

The Harami Pattern is considered either bullish or bearish based on the criteria below:

Bearish Harami: A bearish Harami occurs when there is a large bullish green candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. The most important aspect of the bearish Harami is that prices gapped down on Day 2 and were unable to move higher back to the close of Day 1. This is a sign that uncertainty is entering the market.

Bullish Harami: A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. Again, the most important aspect of the bullish Harami is that prices gapped up on Day 2 and price was held up and unable to move lower back to the bearish close of Day 1.

Harami Candlestick Chart Example

The chart below of the Nasdaq 100 E-mini Futures contract shows an example of both a bullish and bearish Harami candlestick pattern:
http://c.mql5cdn.com/3/22/harami2.gif

The first Harami pattern shown above on the chart of the E-mini Nasdaq 100 Future is a bullish reversal Harami. First there was a long bearish red candle. Second, the market gapped up at the open. In the case above, Day 2 was a bullish candlestick, which made the bullish Harami even more bullish.

Harami Candlestick Buy Signal

A buy signal could be triggered when the day after the bullish Harami occured, price rose higher, closing above the downward resistance trendline. A bullish Harami pattern and a trendline break is a potent combination resulting in a strong buy signal.

The second Harami pattern shown above on the chart of the E-mini Nasdaq 100 Future is a bearish reversal Harami. The first candle was a long bullish green candle. On the second candle, the market gapped down at the open. The chart above of the e-mini shows that Day 2 was a bearish candlestick; this made the bearish Harami even more bearish.

Harami Candlestick Sell Signal

A sell signal could be triggered when the day after the bearish Harami occured, price fell even further down, closing below the upward support trendline. When combined, a bearish Harami pattern and a trendline break is a strong indication to sell.

A somewhat opposite two candlestick reversal pattern is the Bearish Engulfing Pattern

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http://youtu.be/WMwIHgV_FnU

Candlesticks - Vol 11 - Dark Cloud Cover

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Dark Cloud Cover is a bearish candlestick reversal pattern, similar to the Bearish Engulfing Pattern (see: Bearish Engulfing Pattern). There are two components of a Dark Cloud Cover formation:

• Bullish Candle (Day 1)
• Bearish Candle (Day 2)

http://c.mql5cdn.com/3/22/Dark1.gif


A Dark Cloud Cover Pattern occurs when a bearish candle on Day 2 closes below the middle of Day 1's candle.

In addition, price gaps up on Day 2 only to fill the gap and close significantly into the gains made by Day 1's bullish candlestick.

The rejection of the gap up is a bearish sign in and of itself, but the retracement into the gains of the previous day's gains adds even more bearish sentiment. Bulls are unable to hold prices higher, demand is unable to keep up with the building supply.

Dark Cloud Cover Candlestick Chart Example

The chart below of Boeing (BA) stock illustrates an example of the Dark Cloud Cover Pattern:


http://c.mql5cdn.com/3/22/Dark2.gif

Dark Cloud Cover Sell Signal

Traders usually suggest not selling exactly when one sees the Dark Cloud Cover Pattern (Day 1 & Day 2) until other confirming signals are given such as a break of an upward trendline or other technical indicators. One reason for waiting for confirmation is that the Dark Cloud Cover Pattern is a bearish pattern, but not as bearish as it could be: part of the gains from Day 1 have still been preserved.


A more bearish reversal pattern is the Bearish Engulfing Pattern that completely rejects the gains of Day 1 and usually closes below the lows of Day 1.

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http://youtu.be/9fJyoez8j7c

Thanks for the tutorials. They really help in refreshing my knowledge of candlesticks

Candlesticks - Vol 12 - Piercing Pattern

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The Piercing Pattern is a bullish candlestick reversal pattern, similar to the Bullish Engulfing Pattern (see: Bullish Engulfing Pattern). There are two components of a Piercing Pattern formation:

• Bearish Candle (Day 1)
• Bullish Candle (Day 2)

http://c.mql5cdn.com/3/23/PiercingPatternPic1.gif

A Piercing Pattern occurs when a bullish candle on Day 2 closes above the middle of Day 1's bearish candle.
Moreover, price gaps down on Day 2 only for the gap to be filled (see: Gaps) and closes significantly into the losses made previously in Day 1's bearish candlestick.
The rejection of the gap up by the bulls is a major bullish sign, and the fact that bulls were able to press further up into the losses of the previous day adds even more bullish sentiment. Bulls were successful in holding prices higher, absorbing excess supply and increasing the level of demand.

Piercing Pattern Candlestick Chart Example

The chart below of Intel (INTC) stock illustrates an example of the Piercing Pattern:

http://c.mql5cdn.com/3/23/PiercingPatternPic2.gif


Piercing Pattern Candlestick Buy Signal

Generally other technical indicators are used to confirm a buy signal given by the Piercing Pattern (i.e. downward trendline break). Since the Piercing Pattern means that bulls were unable to completely reverse the losses of Day 1, more bullish movement should be expected before an outright buy signal is given. Also, more volume than usual on the bullish advance on Day 2 is a stronger indicator that bulls have taken charge and that the prior downtrend is likely ending.

A more bullish reversal pattern is the Bullish Engulfing Pattern that completely reverses the losses of Day 1 and adds new gains.
For further study, the bearish equivalent of the Piercing Pattern is the Dark Cloud Cover Pattern

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http://youtu.be/oaZ-BUoSu1s

In this tutorial i will show how to install Metatrader 5 on Microsoft Windows 8, the latest operating system by Microsoft. In this tutorial the OS used are fully upgrade to latest build of Windows 8.1 Pro 64 bit.

Attachment 4057

First we go to metaquotes website and download the metarader 5 setup application and save it on desktop.

We go to desktop and locate the MT5 setup file and right click on it, then choose "Run as Administrator". The UAC (User Authorized Control) will pop-up a small windows and ask to continue or not, just click yes.

After that we will see MT5 setup window :

Attachment 4058

Metatrader 5 setup file will detect your operating system either 32 bit or 64 bit. So in the picture above it automatically provide MT5 64 bit setup file. We click next to continue.

Next window it will ask whether agree or not to the license agreement, click yes.

Attachment 4059

Next step we need to determine which hard disk that Metatrader 5 will be install, in this tutorial i choose C :

Attachment 4060

Once we have choose the path to install MT5 setup will continue installation. Wait for it to process the installation and after finish click "finish" button.

Attachment 4061

Attachment 4062

To start Metatrader 5, once again right click on the MT5 icon on the desktop, run it as administrator. Upon startup, MT5 will bring us to server address setup, you can choose the default server setup or choose metaquotes server address like access.metatrader5.com : 443, like example below :

Attachment 4063

After type the server address we want to use, click the scan button to ping the server. Then click on it and press next. After that setup will go to demo account opening window, choose new demo account.

Attachment 4064

The next step is to fill up necessary information and then click next to continue, our setup will finish afterwards.

This is how it looks like after finished our setup :

Attachment 4065

Candlestick Charting - Vol 13 - Bearish Engulfing Pattern

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Bearish Engulfing Pattern
The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, usually occuring at the top of an uptrend. The pattern consists of two Candlesticks:

• Smaller Bullish Candle (Day 1)
• Larger Bearish Candle (Day 2)

http://c.mql5cdn.com/3/22/Bearish1.gif

Generally, the bullish candle real body of Day 1 is contained within the real body of the bearish candle of Day 2.
The market gaps up (bullish sign) on Day 2; but, the bulls do not push very far higher before bears take over and push prices further down, not only filling in the gap down from the morning's open but also pushing prices below the previous day's open.
With the Bullish Engulfing Pattern, there is an incredible change of sentiment from the bullish gap up at the open, to the large bearish real body candle that closed at the lows of the day. Bears have successfully overtaken bulls for the day and possibly for the next few periods.
The chart below of Verizon (VZ) stock shows an example two Bearish Engulfing Patterns occuring at the end of uptrends:


http://c.mql5cdn.com/3/22/Bearish2.gif

Bearish Engulfing Sell Signal

Three methodologies for selling using the Bearish Engulfing Pattern are listed below in order of most aggressive to most conservative:

1. Sell at the close of Day 2. An even stronger indication to sell is given when there is a substantial increase in volume that accompanies the large move downward in price.
2. Sell on the day after the Bearish Engulfing Pattern occurs; by waiting until the next day to sell, a trader is making sure that the bearish reversal pattern is for real and was not just a one day occurance. In the chart above of Verizon, a trader would probably entered on the day after the Bearish Engulfing Pattern because the selling continued.
3. Usually trader's wait for other signals, such as a price break below the upward support line, before entering a sell order. However, in the case of Verizon above, the Bearish Engulfing Pattern occured at the same time as the trendline break below support.

An example of what usually occurs intra-day during a Bearish Engulfing Pattern is presented next.

Intra-day Bearish Engulfing Pattern

The following 15-minute chart of Verizon (VZ) is of the 2-day period comprising the Bearish Engulfing Pattern example on the prior page:
http://c.mql5cdn.com/3/22/Bearish3.gif

• Day 1: As is seen in the chart above, Day 1 was an up day, closing near the day's high (bullish sentiment).
• Day 2: The open was a gap up, a very bullish sign; nevertheless, the bulls ran out of buying pressure and prices fell the rest of the day, closing near the day's lows (bearish sentiment) and lower than Day 1's lows.

The Bearish Engulfing Pattern is one of the strongest candlestick reversal patterns. Its opposite is the Bullish Engulfing Pattern

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http://youtu.be/q77CUI8AeHk

Candlestick Charting - Vol 14 - Bullish Engulfing Pattern

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Bullish Engulfing Pattern


The Bullish Engulfing Candlestick Pattern is a bullish reversal pattern, usually occuring at the bottom of a downtrend. The pattern consists of two Candlesticks:

• Smaller Bearish Candle (Day 1)
• Larger Bullish Candle (Day 2)

The bearish candle real body of Day 1 is usually contained within the real body of the bullish candle of Day 2.

On Day 2, the market gaps down; however, the bears do not get very far before bulls take over and push prices higher, filling in the gap down from the morning's open and pushing prices past the previous day's open.

The power of the Bullish Engulfing Pattern comes from the incredible change of sentiment from a bearish gap down in the morning, to a large bullish real body candle that closes at the highs of the day. Bears have overstayed their welcome and bulls have taken control of the market.


http://c.mql5cdn.com/3/22/Engulfing1.gif

The chart below of the S&P 500 Depository Receipts Exchange Traded Fund (SPY) shows an example of a Bullish Engulfing Pattern occuring at the end of a downtrend:
http://c.mql5cdn.com/3/22/Engulfing2.gif

Bullish Engulfing Buy Signal

There are three main times to buy using the Bullish Engulfing Pattern; the buy signals that are presented below are ordered from the most aggressive to most conservative:

1. Buy at the close of Day 2 when prices rallied upwards from the gap down in the morning. A strong indication that the rally on Day 2 was significant and truly a reversal of market sentiment, is if there was a substantial increase in volume that accompanied the large move upward in price.
2. Buy on the day after the Bullish Engulfing Pattern occurs; by waiting until the next day to buy, a trader is making sure that the bullish reversal and enthusiasm of the prior day is continuing and was not just a one day occurance like a short covering rally. In the chart above of the SPY's, a trader would likely not enter the market long on the day after the Bullish Engulfing Pattern because the market gapped down significantly and even made new lows. A trader using methodology #2, would likely wait for a more concrete buy signals such as the one presented in method #3 next.
3. After a trader sees the Bullish Engulfing Pattern, the trader would wait for another signal, mainly a price break above the downward resistance line, before entering a buy order.

An example of what usually occurs intra-day during a Bullish Engulfing Pattern is presented next.

Intra-day Bullish Engulfing Pattern

The following 15-minute chart of the S&P 500 exchange traded fund (SPY) is of the 2-day period comprising the Bullish Engulfing Pattern example on the prior page:
http://c.mql5cdn.com/3/22/Engulfing3.gif

• Day 1: As is seen in the chart above, Day 1 was a down day, even closing the day at the low (bearish sentiment).
• Day 2: The open was a gap down, very bearish sign; but the bulls appeared to have had enough because the price of the SPY's went up the rest of the day, closing near the day's highs (bullish sentiment) and higher than Day 1's high.

The Bullish Engulfing Pattern is one of the strongest candlestick reversal patterns. Its opposite is the Bearish Engulfing Pattern

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http://youtu.be/17V_5Y2rweA

Candlestick Charting - Vol 15 - Evening Star

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The Evening Star Pattern is a bearish reversal pattern, usually occuring at the top of an uptrend. The pattern consists of three candlesticks:

• Large Bullish Candle (Day 1)
• Small Bullish or Bearish Candle (Day 2)
• Large Bearish Candle (Day 3)

http://c.mql5cdn.com/3/22/Evening1.gif


The first part of an Evening Star reversal pattern is a large bullish green candle. On the first day, bulls are definitely in charge, usually new highs were made.


The second day begins with a bullish gap up. It is clear from the opening of Day 2 that bulls are in control. However, bulls do not push prices much higher. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral.

Generally speaking, a bearish candle on Day 2 is a stronger sign of an impending reversal. But it is Day 3 that is the most significant candlestick.

Day 3 begins with a gap down, (a bearish signal) and bears are able to press prices even further downward, often eliminating the gains seen on Day 1.


Evening Star Candlestick Chart Example

The chart below of Exxon-Mobil (XOM) stock shows an example a Evening Star bearish reversal pattern that occured at the end of an uptrend:
http://c.mql5cdn.com/3/22/Evening2.gif


Day 1 of the Evening Star pattern for Exxon-Mobil (XOM) stock above was a strong bullish candle, in fact it was so strong that the close was the same as the high (very bullish sign). Day 2 continued Day 1's bullish sentiment by gapping up. However, Day 2 was a Doji, which is a candlestick signifying indecision. Bulls were unable to continue the large rally of the previous day; they were only able to close slightly higher than the open.

Day 3 began with a bearish gap down. In fact, bears took hold of Exxon-Mobil stock the entire day, the open was the same as the high and the close was the same as the low (a sign of very bearish sentiment). Also, Day 3 powerfully broke below the upward trendline that had served as support for XOM for the past week. Both the trendline break and the classic Evening Star pattern gave traders a signal to sell short Exxon-Mobil stock.

The Evening Star pattern is a very powerful three candlestick bearish reversal pattern. The bullish equivalent of the Evening Star is the Morning Star pattern

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http://youtu.be/bkfg7icb6J4

Candlestick Charting - Volume 16 - Morning Star

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The Morning Star Pattern is a bullish reversal pattern, usually occuring at the bottom of a downtrend. The pattern consists of three candlesticks:

• Large Bearish Candle (Day 1)
• Small Bullish or Bearish Candle (Day 2)
• Large Bullish Candle (Day 3)

http://c.mql5cdn.com/3/23/MorningStarPic1.gif

The first part of a Morning Star reversal pattern is a large bearish red candle. On the first day, bears are definitely in charge, usually making new lows.
The second day begins with a bearish gap down. It is clear from the opening of Day 2 that bears are in control. However, bears do not push prices much lower. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).
Generally speaking, a bullish candle on Day 2 is a stronger sign of an impending reversal. But it is Day 3 that holds the most significance.
Day 3 begins with a bullish gap up, and bulls are able to press prices even further upward, often eliminating the losses seen on Day 1.
Morning Star Candlestick Chart Example

The chart below of the S&P 400 Midcap exchange traded fund (MDY) shows an example a Morning Star bullish reversal pattern that occured at the end of a downtrend:
http://c.mql5cdn.com/3/23/MorningStarPic2.gif


Day 1 of the Morning Star pattern for the Midcap 400 (MDY) chart above was a strong bearish red candle. Day 2 continued Day 1's bearish sentiment by gapping down. However, Day 2 was a Doji, which is a candlestick signifying indecision. Bears were unable to continue the large decreases of the previous day; they were only able to close slightly lower than the open.
Day 3 began with a bullish gap up. The bulls then took hold of the Midcap 400 exchange traded fund for the entire day. Also, Day 3 broke above the downward trendline that had served as resistance for MDY for the past week and a half. Both the trendline break and the classic Morning Star pattern gave traders a signal to go long and buy the Midcap 400 exchange traded fund.
The Morning Star pattern is a very powerful three candlestick bullish reversal pattern. The bearish equivalent of the Morning Star is the Evening Star pattern

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http://youtu.be/hoieLD74QTQ

How I Trade Breakouts

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Talking Points:

• Always wait for the current candle to close beyond the trendline to confirm the break.
• Enter into the trade when price retraces back within a few pips of the original trendline, trading in the direction of the original breakout.
• Set your Stop a few pips beyond the trendline and set your Limit at least twice as far as your Stop.

Step 1. - Locating the Trendline

As a review, a trendline is a line connecting two or more lows or two or more highs, with the lines projected out into the future. Traders than look at these projected lines and look for future prices to react around those levels.
http://c.mql5cdn.com/3/24/break1.png

Step 2. – Wait For a Confirmed Breakout

Next, we need to see how the price reacts to the projected trendline. There are two potential outcomes when price comes into contact with a trendline:

• The price will bounce off the trendline
• The price will break through the trendline

So we wait to see if the price does in fact break through the price. But we aren’t ready to place a trade just because the price breaks through the trendline. We need to wait and see if the current candle closes beyond the trendline. We require a candle to close beyond the trendline to confirm the breakout. This is a very important rule.
http://c.mql5cdn.com/3/24/break2.png

Check out the chart above depicting a trendline on a current USD/JPY Hourly chart. There were two times in the past week where this trendline was broken, but look what happened. They were false breakouts. Sellers were not able to keep the price down below the trendline and both potential breakout candles closed above the trendline. Had we sold at either of those two opportunities, we would have been crushed two times in a row. Something we definitely want to avoid.

So even though it is tempting to get immediately into a trade as price breaks a trendline in real-time, you would be susceptible to false breaks. Patience is a virtue.
Step 3. Set Up The Trade

Remember the first image I showed you of the GBP/USD Hourly chart? Let’s go back to that example because it actually ended up producing a near perfect breakout setup. Soon after that snapshot was taken, the GBP/USD fell and broke through our trendline with authority. A very short time after that, the Hourly candle closed below the trendline and confirmed the breakout as well. Once this happened, it was time to get to work to setup this trade.

There are 3 things we needed to do to execute this breakout trade:

• Set an Entry order to Sell just below the original trendline.
• Attach a Stop order several pips above the trendline.
• Attach a Limit that is as least twice as large as our Stop (increase your trading profitability by learning the importance of the risk/reward ratio).

There is a saying that goes “What once was resistance, can later become support. And what once was support, can later become resistance.” This is the mantra we rely on when setting an Entry order near the original trendline. We are looking for price to retrace back to the point of support/resistance it just broke through, and then continue back into the direction of the original breakout. Take a look at how the trade was setup below.
http://c.mql5cdn.com/3/24/break3.png

Our Entry order to Sell was placed a couple pips below the trendline, our Stop Loss was set several pips above the trendline (approx.. 15 pips from our Entry) and our Limit was set twice as far as our stop (approx. 30 pips from our Entry). Within the next hour, the price retraced back to the original trendline, and then move back in the direction of original breakout, exactly what we wanted.

So to recap, we were able to enter into a trade on a confirmed breakout, we were able to get in at a much more favorable price than entering the break in real-time, and we were able to set an extremely tight stop (read: lower our risk) beyond what should be a valid resistance level.
As it turned out, this particular trade was a success, but that doesn’t mean every trade will be a winner. However, you should take comfort in the fact that as long as you are using a 1:2 risk/reward ratio, you only need to be correct 33% of the time to break even. If you are right more than 33% of the time, you should be a profitable trader in the long run with this strategy.

Breaking Bad

Trendline breaks can be tricky to trade, but hopefully this article gave you a clear approach to mastering them. We've learned that you should always wait for confirmation of a break by requiring the current candle to close. We also learned placing our Entry order near the trendline will give us a better entry price and reduce our risk by allowing a tighter Stop. Setting our Limit as least twice as far as our Stop should also help shift the odds in our favor. Good luck with your trading!

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http://youtu.be/6YZ4ORz-UJ0

Trading Risk Management - Tight Stops

http://youtu.be/Q42PGn7B8jM

Price Bar Reversals (1 of 9) - Intro

Price Bar Reversals (1 of 9) - An Intro to a series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.


http://youtu.be/HYZIO3qTw0s

Price Bar Reversals (2 of 9) - The Bearish Rejection Pattern

Price Bar Reversals (2 of 9) - The Bearish Rejection Pattern - Part 2 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.

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It is important to remember the following guidelines relating to bearish reversal patterns:

• Most patterns require further bearish confirmation.
  
• Bearish reversal patterns should form within an uptrend.
  
• Other aspects of technical analysis should be used as well.

Bearish Confirmation

Bearish reversal patterns can form with one or more candlesticks; most require bearish confirmation. The actual reversal indicates that selling pressure overwhelmed buying pressure for one or more days, but it remains unclear whether or not sustained selling or lack of buyers will continue to push prices lower. Without confirmation, many of these patterns would be considered neutral and merely indicate a potential resistance level at best. Bearish confirmation means further downside follow through, such as a gap down, long black candlestick or high volume decline. Because candlestick patterns are short-term and usually effective for 1-2 weeks, bearish confirmation should come within 1-3 days.


http://stockcharts.com/school/data/m...arkconfirm.png I


Existing Uptrend

To be considered a bearish reversal, there should be an existing uptrend to reverse. It does not have to be a major uptrend, but should be up for the short term or at least over the last few days. A dark cloud cover after a sharp decline or near new lows is unlikely to be a valid bearish reversal pattern. Bearish reversal patterns within a downtrend would simply confirm existing selling pressure and could be considered continuation patterns.

There are many methods available to determine the trend. An uptrend can be established using moving averages, peak/trough analysis or trend lines. A security could be deemed in an uptrend based on one or more of the following:

• The security is trading above its 20-day exponential moving average (EMA).
  
• Each reaction peak and trough is higher than the previous.
  
• The security is trading above a trend line.

These are just three possible methods. Some traders may prefer shorter uptrends and qualify securities that are trading above their 10-day EMA. Defining criteria will depend on your trading style, time horizon and personal preferences.

based on this article.

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http://youtu.be/ADtvgYYiRMo

Price Bar Reversals (3 of 9) - The Bullish Rejection Pattern

The Bullish Rejection Pattern - Part 3 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.

More info - read this article - Candlestick Bullish Reversal Patterns


http://youtu.be/m5cNLNHms00

Price Bar Reversals (4 of 9) - Open Close Reversal

The Open Close Reversal - Part 4 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.


http://youtu.be/4xUznMMN4Pw

Price Bar Reversals (5 of 9) - The Closing Price Reversal

The Closing Price Reversal - Part 5 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.


http://youtu.be/kLnb5A-9N5Y

How to Use the Accumulation/Distribution Momentum Indicator

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Accumulation Distribution uses volume to confirm price trends or warn of weak movements that could result in a price reversal.

• Accumulation: Volume is considered to be accumulated when the day's close is higher than the previous day's closing price. Thus the term "accumulation day"
• Distribution: Volume is distributed when the day's close is lower than the previous day's closing price. Many traders use the term "distribution day"

Therefore, when a day is an accumulation day, the day's volume is added to the previous day's Accumulation Distribution Line. Similarly, when a day is a distribution day, the day's volume is subtracted from the previous day's Accumulation Distribution Line.

The main use of the Accumulation Distribution Line is to detect divergences between the price movement and volume movement. An example of the Accumulation Distribution Line is shown below in the chart of the Nasdaq 100 exchange traded fund QQQQ:

Attachment 4481

Volume Interpretation

The basic interpretation of volume goes as follows:

• Increasing and decreasing prices are confirmed by increasing volume.
• Increasing and decreasing prices are not confirmed and warn of future trouble when volume is decreasing.

For more in-depth analysis of Volume.

High #1 to High #2

The Nasdaq 100 made an equal high at High #2; however, the Accumulation Distribution Line failed to make an equal high, in fact it made a lower high. On average, less volume was transacted on the move higher at High #2 than occured on the first move higher at High #1; thus, this could be interpreted as there being less strength and conviction behind the rally in the Nasdaq the second move higher. This failure of the Accumulation Distribution Line signaled a strong bearish divergence.

High #3 to High #4

Again, the Accumulation Distribution line made a lower high, even though the Nasdaq 100 this time made a higher high. This bearish divergence warned that the second move to make a higher high in price lacked conviction.

Low #1 to Low #2

The bearish divergence from Low #1 to Low #2 confirmed the later bearish divergence of High #3 to High #4. On average, more volume was occuring on down days than up days, even while the Nasdaq 100 was making higher highs and higher lows, which usually is considered a sign of strength.

In summary, the Accumulation Distribution Line is a very effective tool to confirm price action and show warnings of potential price reversals. It is important to incorporate volume into price analysis, and the Accumulation Distribution Line is one of many indicators to do just this. Other indicators that include price and volume analysis and could be considered more accurate than the Accumulation Distribution Line include the Chaikin Oscillator, Money Flow Index, and Price Volume Trend indicator.

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One Indicator Stock Traders Must Follow

Attachment 4482

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http://youtu.be/fbcQZo3s7Ac

Price Bar Reversals (6 of 9) - Hook Reversal

The Hook Reversal - Part 6 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.


http://youtu.be/J1ZYpv0MJ1g

Price Bar Reversals (7 of 9) - The Key Reversal

The Key Reversal - Part 7 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.


http://youtu.be/x-RzniyFgJ4

Price Bar Reversals (8 of 9) - The Island Reversal

The Island Reversal - Part 8 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.


http://youtu.be/Z0f9WEt3GME

Price Bar Reversals (9 of 9) - The Pivot Point Reversal

The Pivot Point Reversal - Part 9 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.



http://youtu.be/271_wkv4Oto

The Hidden Secret of Technical Analysis

Discover a whole 'other world' of technical analysis, where novice traders fear to go.

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Technical Analysis of Moving Average Forex Indicator

Forex Trend Identification

The moving average can be used as an indicator for generating Forex trading signals. A buy or sell Forex signal is generated when price either moves above or below the moving average, respectively.

If the MA is heading upward in diagonal manner then the general Forex market trend is upwards.

If the on the other hand the MA is heading downwards in diagonal manner then the general Forex market trend is downwards.

Upward Forex Trend/Bullish Trend

If the MA is moving up, then the trend is upwards and the signal generated is a buy/bullish signal.

As long as the price location is above the moving average then the Forex trend will remain as an upward trend. The moving average will act as a “support level” and price action of the chart candlesticks should not close below the MA.

Moving Average Buy Signal

When the price moves above the MA and closes above the moving average, a buy signal is generated.

Forex Traders, who want to confirm the trade signal before implementing it, should wait until the MA line turns and starts to move in an upward direction. It is always best to wait for the confirmation signal so as to reduce chances of a whipsaw.
http://c.mql5cdn.com/3/21/1313_1.png



Downward Forex Trend/Bearish Market

If the MA is moving down, then the Forex trend is downwards and the signal generated is a sell/short signal.

As long as the price location is below the MA then the trend will remain as a downward bearish Forex trend. The MA will act as a “resistance level” and price action of candlesticks should not close above the MA.

Moving Average Sell Signal

When the price moves below the MA and closes below the moving average, a sell signal is generated.

Traders who want to confirm the signal should wait until the MA line turns and starts to move in a downward direction. This will reduce the chance of trading a whipsaw.


http://c.mql5cdn.com/3/21/1313_2.png



Range Market signals

Range Market signals can also be identified using the MA. Range Market signals will be illustrated in the next lesson.

Moving average crossover method

Moving average crossover method is also another Forex trend generation method that is more favored by the Forex traders compared to the above signal generation method. It is also the simplest form of a Forex trading system widely used by traders. This MA crossover method is combined with other Forex technical indicators to form more complex Forex trading systems

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Moving Average Whipsaws in Range Market

The MA is a useful indicator to trade with when a trend has formed. However the indicator is prone to whipsaws when the price is trading in range market.

The MA is prone to whipsaws during a ranging market because the price is volatile and keeps moving around the average, causing the indicator to give signals indicating upward trend and then quickly changing to give sell signals.

It is for this reason that the MA should not be used to trade in a range based market.
http://c.mql5cdn.com/3/21/ranging.png



Ranging Market & Whipsaws

This is why it is best to combine this indicator with other indicators when generating trading signals to trade currencies with.

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Moving Average Support and Resistance Levels

Moving Averages can be used as points of support and resistance.

When price reaches the moving average, the MA level can act as a point of support or resistance for the price.

Buy Signal

If price is on an up trend and starts to retrace, then most traders might wait to buy at a better price when the price hits a support level. Traders will sometimes use the MA to determine the support level.

A buy signal is generated when price hits the MA, turns and starts moving in the upward direction. The signal is confirmed when price closes above the MA. Because many traders use the moving averages to generate trading signals, price will normally react to these levels.

A stop loss should be set just below the MA. Ideally it should be set a few pips below the previous low.
http://c.mql5cdn.com/3/21/support1.png



Sell Signal

If price is on a down trend and starts to retrace, then most traders might wait to sell at a better price when the price hits a resistance level. Traders will sometimes use the MA to determine the resistance level.

A sell signal is generated when price hits the MA, turns and starts moving in the downward direction. The signal is confirmed when price closes below the MA. Because many traders use the moving averages to generate trading signals, price will normally react to these levels.

A stop loss should be set just above the MA. Ideally it should be set a few pips above the previous high.
http://c.mql5cdn.com/3/21/support2.png

Resistance turns support

When a resistance is broken it turns into support and vice versa.

This happens when the fundamentals of a currency change and consequently the direction of a currency pair. The direction change is reflected by the moving average, the direction is confirmed when the resistance turns into support or vice versa (when support turns into resistance)
http://c.mql5cdn.com/3/21/support3.png

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http://youtu.be/1SL09dlEVio

The Importance of Exit Strategy - Part #1

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How to Exit While Trading with Trendlines

Talking Points:

• Traders should focus on their exit plan just as much as their trade entries.
• Trendline traders could set their stop losses beyond the nearest support or resistance level and set their limits within the nearest support or resistance level.
• Setting exit prices according to support and resistance levels could tip the odds in your favor.

How Important Is Your Exit Strategy?

Many traders have a strong set of rules that they follow to enter trades, but have difficulty in selecting their exits. This is troubling because how we exit a trade should be just as important, if not more important than how a trade is entered. After all, our exits ultimately determine if our trades are profitable for us or not. So we need to make sure our exit strategy is just as logical as our entry strategy.

When we place our trades based on trendlines, we are placing them based on support and resistance levels. We are thinking the price will bounce off a trendline like it did in the past. I propose we use the same logic when setting our stops and limits.

http://c.mql5cdn.com/3/23/trendline1.png

In the example above, it’s easy to see the sell entry that was given to us based on the bearish trendline. We entered right at the trendline looking for a bounce back down, but where do we want to exit? When do we call it quits if the trade goes against us? Where do we place our profit target? Let’s take a look.

Setting Stops Beyond Support/Resistance

We need to look at placing our stop somewhere above this trendline. If the resistance is broken through, we were wrong on the trade and should accept the loss quickly. It’s possible that price could return back to profitable territory after breaking this resistance, but we cannot rely on being lucky. We can only trade based on what we see.

http://c.mql5cdn.com/3/23/trendline2.png

I like to set my stop 5-25 pips from the closest support/resistance level depending on the time frame I am trading. The smaller the time frame of the chart, the tighter I will place my stops. On this trade, I set my stop 5-6 pips away from my entry since that was beyond the resistance line as well as the previous swing high (Bounce #2).

Remember that when we set our Stop loss, this is also setting our monetary risk on the trade. So we also need to consider our trade side in respect to our Stop loss distance.

Setting Limits Within Support/Resistance

Now that our stop is set, we need to focus on our profit target. For our limit placement, we have two objectives:

• Our limit’s distance needs to be further than our stop’s distance.
• Our limit needs to be placed within the closest support/resistance (by at least 5 pips).

The reason we want our limit further than our stop is because we always want to try to make more money than what we are risking on each individual trade. This is something we discuss heavily at DailyFX so I will say it again here. We want a positive risk/reward ratio.

And the reason we want our limit to be placed within the closest support/resistance level (by at least 5 pips) is for the exact same rationale we used to open this trade to begin with. We know prices have a tendency to bounce off price levels they have bounced off of before, so we want to make sure that no support/resistance is in between our entry and our limit level. In the example below you can see I placed my limit 5 pips above the swing low (potential support). This gives price a clear path to a profitable trade.

http://c.mql5cdn.com/3/23/trendline3.png

Trendline Strategy Complete

This trendline strategy is one that can be used universally across all currency pairs and time frames so it is definitely a worthwhile style of trading to learn. The logic behind the entry and exit rules is also something that can be tailored to other types of strategies as well. Good trading!

http://c.mql5cdn.com/3/23/usdcad-m5-...shot-52946.png

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http://youtu.be/8KV5BCWQrNM

The Importance of Exit Strategy - 2

Risk Management - Exit Strategy Video 2 (part 2 of 4).


http://youtu.be/pgw1cZEGh-c

Stock Market Timing

January barometer - (from wikipedia) : "The January barometer is the hypothesis that stock market performance in January (particularly in the U.S.) predicts its performance for the rest of the year. So if the stock market rises in January, it is likely to continue to rise by the end of December. The January barometer was first mentioned by Yale Hirsch in 1972"

This is the page #16 of 2008 edition of this book (Stock Trader's Almanac 2008) :

Attachment 5231


http://youtu.be/qIxJY24NYDU

The Importance of Exit Strategy - 3

• what are the goals to exit
• how does chosen market move
• approach for exit
• initial stop loss management
• ongoing exit management
• multiple pairs
• news and economic releases

read/watch more here:


http://youtu.be/4x86460t4eg

The Importance of Exit Strategy - 4

Risk Management - Exit - Strategy video (part 4 of 4)


http://youtu.be/BttdXinTaCM

3 Candlestick Patterns For Market Reversals - Morning Doji Star, Evening Doji Star, Island Reversal Patterns


http://youtu.be/8KsV97e1_Kc

Stock Market Technical Analysis - Aroon Mid Point

This is practical example about how to use different indicators for technical analysis.


http://www.youtube.com/watch?v=fwy5_iVMlt8&list=LLQAvjhqp559qSQx2dcg9WVg& feature=share&index=2

Preliminary Announcement of the MetaTrader 5 Client Terminal build 900: Magazines in MetaTrader Market and New MetaViewer

Over the next week, we will release the MetaTrader 5 client terminal update. After the release of the update, we will publish an additional news containing the full list of changes and the build number. The following changes are planned:

1. Market: Added new product category in MetaTrader AppStore - Magazines. Now, users can buy not only trading applications but also trading and financial magazines quickly and easily.
   
   http://c.mql5.com/3/30/market_magazines__1__1.png
   
   
   Just like MetaTrader 5 applications, magazines can be purchased at MQL5.community Market as well as directly via MetaTrader 5 terminal. All magazines are accompanied by detailed descriptions and screenshot galleries:
   
   
   http://c.mql5.com/3/30/market_magazines_view__1__1.png
   
   
   The latest magazine issues are always displayed in the showcase, while the previous ones can be found on the Archive tab.
   
   To buy a magazine, you should have an MQL5.com account and the necessary amount of funds on it. The account data should be specified at the Community tab of the terminal settings:
   
   
   http://c.mql5.com/3/30/community__1__1.png
   
   
   Click Buy on the magazine's page to purchase it. Purchase confirmation dialog appears:
   
   
   http://c.mql5.com/3/30/market_buy_confirm__1__1.png
   
   
   To continue, agree to the rules of using the Market service and enter your MQL5.community password. After that, the specified amount of funds will be withdrawn from your account and the magazine will be downloaded. Buy button will be replaced by Open one.
   
   Magazine files are downloaded to My Documents\MQL5 Market\Magazines\[Magazine name]\[Issue name]. The download may be performed in two formats:
   
   • MQB - this protected format is used for paid magazines. When purchasing and downloading a magazine file, it is encoded so that it can be opened only on the PC it has been downloaded to. Generation of an encoded copy is called activation. Each magazine can be activated at least 5 times on different hardware. Magazine sellers can increase the number of activations at their sole discretion.
   • PDF - this format is used for free magazines. After downloading, such file can be moved and viewed on other devices.
   
   The special component called MetaViewer has been added to MetaTrader 5 terminal allowing users to view MQB files. This application is launched when you click Open at the downloaded magazine page. If User Account Control system is enabled on the user's PC, the user will be prompted to allow the terminal to associate MQB files with MetaViewer during the first launch. After the association, MQB files are automatically opened in MetaViewer when launched from Windows file explorer.
   
   
   
   If you click ОК, the files are associated and the selected magazine issue is opened in MetaViewer immediately. If you click Cancel, only the magazine issue is opened.
   
   
   http://c.mql5.com/3/30/metaviewer__1__1.png
   
   
   MetaViewer is a convenient application for viewing books and magazines in MQB and PDF formats. Keyboard arrows are used to turn over the pages: left and right arrows - for page-by-page navigation, while up and down arrows - for scrolling. MetaViewer menu and control panel contain additional commands for setting the journal's view and navigation:
   
   
   • File - commands for opening the files and exiting the program.
   • View - display settings: interface language, page look, enabling control panel and status bar, as well as page rotation.
   • Navigation - navigation commands: switching between the pages, moving to the first, last or selected page.
   • Zoom - page scale management commands: zooming in and out, fitting height, width and actual page size.
   • Help - information about the program and useful links.
   
   
2. Terminal: added MQL tab to EX5 file properties. The tab contains the program's icon as well as its name and description specified in the application's source code via the appropriate #property parameters.
   
   
   
   The tab appears only after MetaViewer is registered in the system. If a current user has sufficient rights and User Account Control system is disabled, MetaViewer is registered automatically during the terminal's first launch after the update. Otherwise, the user will see the dialog window requesting a one-time elevation of rights for MetaViewer during the first attempt to open a magazine.
   
   
   
3. Terminal: Added MQL5.community fast registration dialog in case a user has no account. Now, an MQL5.community account can be created without the need to leave the terminal.
   
   
   http://c.mql5.com/3/30/mql5_register__1__1.png
   
   
   Specify login and email address in the registration window. After clicking Register, an email for MQL5.community account activation is sent to the specified address.
   
   MQL5.community account allows traders to use additional powerful services:
   
   • MetaTrader 5 AppStore - users can buy MetaTrader 5 apps or download them for free directly from the terminal. MetaTrader 5 AppStore offers hundreds of various applications and their number is constantly increasing.
   • Signals - users can subscribe to trading signals provided by professional traders and make profit. Trading operations are automatically copied from provider's account to subscriber's one. The service also allows selling your own trading signals. A trading account can be connected to the monitoring system in a few clicks.
   • Jobs - a freelance service allowing customers to securely order the development of MetaTrader 4 and 5 applications. The orders are executed by experienced programmers. The service also allows you to make profit by developing programs ordered by customers.
   
   
4. Terminal: Fixed the depth of market freezing when the best bid price is higher than the best ask one.
5. Terminal: Fixed setting the fill policy type for market trade requests depending on the trade symbol's execution type and allowed filling modes.
6. Terminal: Fixed display of incorrect SL and TP values in the position open dialog in case there is a position with placed SL and TP levels and the levels are placed "In Points". Incorrect SL and TP level values in points have previously been inserted to these fields. Beginning with the new build, the values in the above mentioned case are displayed in prices regardless of the level placing mode.
7. Terminal: Fixed occasional incomplete display of the trading history for the current day.
8. Terminal: Reduced memory consumption during MQL5 CodeBase and MQL5 Market operation.
9. Terminal: Fixed working with context menus when using touch screen devices powered by Microsoft Windows 8 or higher.
10. Market: Added product activation confirmation dialog displaying the number of remaining activations.
    
    
    
    Each application purchased in MetaTrader AppStore is additionally protected, so that it can be launched only on the PC it has been downloaded to during the purchase. Generation of an encoded copy is called activation. Each product can be activated at least 5 times on different hardware. Sellers can increase the number of activations at their sole discretion.
    
    The new dialog protects users from wasting activations by informing that their number is limited.
11. MQL5: Fixed crash when initializing primitive type arrays by a sequence.
12. MQL5: Fixed errors when working with #ifdef/#else/#endif conditional compilation macros.
13. MQL5: MQL5 language compiler moved to MetaEditor. The compiler will be available for download as a separate .exe file.
14. Signals: Added information about a signal, to which an account is subscribed, to the Navigator window:
    
    http://c.mql5.com/3/30/navigator_signal__1__1.png
    
    
    If the account is subscribed to the signal, the appropriate icon with the signal's name is shown for it. When hovering the mouse cursor over the name, the subscription's expiration date is displayed. The context menu contains commands for viewing the signal and unsubscribing from it. The latter one is displayed only if the appropriate trading account is currently active in the terminal.
    
    The subscription icon makes working with signals more convenient.
15. Signals: Added legend for equity, growth, balance and distribution graphs. Also, marks displaying funds depositing and withdrawal have been added to the equity graph. When hovering the mouse cursor over the balance operation triangle, a tooltip with the operation sum is displayed:
    
    
    http://c.mql5.com/3/30/graph_legend__1__1.png
    
16. MetaEditor: Fixed the loss of focus in the code editing window that occurred after the first compilation.
17. MetaEditor: Fixed automatic scrolling of the compilation window to the first warning if there are no errors.
18. MetaEditor: Fixed highlighting predefined _DEBUG and _RELEASE macros in the source code.
19. MetaEditor: Fixed operation of snippets if the automatic entering of line indentations is disabled.
20. Fixed errors reported in crash logs.
21. Updated documentation.

The update will be available through the LiveUpdate system.

How should I choose my trade strategy?

Case shows slides about what strategies to use in high and low implied volatility situations. Her and Tom talk about how the market conditions affect the types of plays she makes.

http://www.youtube.com/watch?v=hxUKe7M7Pmk&feature=share&list=LLQAvjhqp55 9qSQx2dcg9WVg

Correctly Using MACD/Fibonacci Technical Analysis

It is mostly related to trading options (same case as with previous video) but it is interesting to watch because it is real practical example.

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Most traders use MACD/Fibonacci analysis wrong. Here's the right way to use these indicators along with some live examples!

http://youtu.be/MvNe6mdyS3E